SAN DIEGO - The City of San Diego Redevelopment Agency authorized a development agreement with Gateway I Housing Investors, L.P. to create a 42-unit, for-rent affordable housing development in the Barrio Logan Redevelopment Project Area. The agreement marks another positive step in the City's continuing efforts to work with developers to provide a quality mix of housing options for families of all incomes.

The project, named Gateway I Family Apartments, will be located on Logan Avenue and 16th Street, adjacent to the East Village. The new project will replace an existing auto wrecking yard and four-unit apartment building. Upon securing funding, the project is estimated to begin construction in summer 2005 and will be completed in spring 2006.

"We at Simpson Housing Solutions and United Community Inc. are proud to have been a participant in bringing quality affordable housing to the Barrio Logan Community," said Susan Han with United Community Inc. "We look forward to working with the San Diego Redevelopment Agency to continue to bring these apartment homes throughout the San Diego area."

The development will provide 16 two-bedroom, two-bath units and 25 three-bedroom, two-bath units for families that fall into income guidelines. A final unit will serve as the building manager's lodging. The project will also include a multi-purpose room, full-service kitchen, a children's play area with public restrooms, a media center with large screen TV, video and DVD, a technical center with computer, fax and business services for residents (including free internet service for residents for email, resume writing and job search), and on-site management.

"The Gateway project is an excellent example of what can be done when the public and private sector come together to address an important need in the Barrio Logan community,' said Councilmember Ralph Inzunza, whose Eighth District includes the Gateway development. "We will continue to push for more high-quality affordable housing options in communities that desperately need them."

Funding for the project was provided through the Redevelopment Agency Affordable Housing Program, a collaboration of the Redevelopment Agency (which includes the City's Community and Economic Development Department, the Centre City Development Corporation and the Southeastern Economic Development Corporation) and the San Diego Housing Commission. More than $3.6 million in redevelopment housing set aside funds from the Centre City Redevelopment Project Area will be used for the subsidy. Additional funding will be provided by low-income tax credit proceeds and private lenders. The project targets low- to moderate- income families making between 30% - 60% of the Area Median Income.

"With housing and rental prices continuing to climb in Barrio Logan, finding high-quality housing for low and moderate income residents is becoming increasingly difficult," said Hank Cunningham, director of the City's Community and Economic Development Department and assistant executive of the City's Redevelopment Agency. "Ideally, these apartments will be the first of many affordable housing projects in this historic neighborhood."

The goal of the Redevelopment Agency Affordable Housing Program is to increase the City's affordable housing inventory for very low- and low-income households, to assist people with moderate-income levels achieve homeownership and, on a case-by-case basis, to acquire and rehabilitate existing properties. Proposals may be for residential or mixed-use developments; housing that is all low-income or is mixed-income; multi- or single-family dwelling units or a combination thereof; and rental or for-sale units.

In addition to Gateway I Family Aparments, there are five additional affordable housing developments that have been approved, representing a combined total of 638 units, 456 of which are affordable. These six projects are located throughout the City and could have redevelopment subsidies of more than $25.8 million combined. There are nine additional projects under review, representing 1,181 new housing units, 735 of which are earmarked as affordable housing. These projects represent potential redevelopment subsidies of more than $52 million combined.

For information on the development of the affordable rental units at Gateway I Family Apartments, contact the development team at United Community Inc. at (949) 623-8741.

For more information about available affordable housing units citywide, contact the San Diego Housing Commission at (619) 231-9400 or visit www.sdhc.net. Comprehensive affordable housing information, including policies, initiatives and a wide array of programs, is also available on the City of San Diego's Web site at www.sandiego.gov/housing.

For more information about the Barrio Logan Redevelopment Project Area, contact Rudy Gonzalez, Redevelopment Project Manager at (619) 533-4254 or rgonzalez@sandiego.gov, or contact the Redevelopment Agency, Community and Economic Development Department at (619) 533-4233 or visit the City's web site at www.sandiego.gov/redevelopment-agency.

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The City of San Diego Redevelopment Agency eliminates blight from designated areas, as well as achieves the goals of development, reconstruction and rehabilitation of residential, commercial, industrial, and retail districts. Redevelopment is one of the most effective ways to breathe new life into deteriorated areas plagued by social, physical, environmental or economic conditions that act as a barrier to new investment by private enterprise. The City of San Diego Redevelopment Agency consists of three divisions: the City Redevelopment Division (which provides overall agency management and is housed in the City of San Diego Community and Economic Development Department), the Centre City Development Corporation and the Southeastern Economic Development Corporation.